How to Punish Wall Street, Protect Main Street

Bailout should be borrom up, not top down

The current bailout solution is a variation of 'trickle down' economics, the theory being that if you clump the money up at the top of the economic ladder it will eventually trickle down to the rest of us. This failed theory has resulted in the widest wealth gap in U.S. history. And investment banks only lend money to, at best, large corporations...If you have to commit funds to a bailout, why not commit them where they will do the most good. Make the money available to commercial and neighborhood banks as an 'emergency' fund available through the 'Fed window' where banks can borrow money, and make the rate half that of the fed window rate. Commercial and neighborhood banks would be encouraged by the interest rate spread to draw down the money and make small business and indidividual loans. But since it is a loan from the Fed the banks would be on the hook if the new borrowers defraulted on the loan reducing the risk to taxpayers who fund the bailout...Money trickling in from the ''bottom up'' is more likely to stimulate consumer spending, the basis of the American economy, then using the same money to bail out investment banks that created the problem in the first place....Bernie Bicoy. www.vcresearch.info

benrie bicoy of CA @ Sep 25, 2008 13:49:10 PM

bailout robbery

Totally screwed up my math on that last post. $700bn divided by 300mn equals $2300 per citizen. My mistake.

Bryan Beyer of CA @ Sep 25, 2008 13:33:10 PM

bailout robbery

$700bn divided by 300,000 citizens equals $2.33 million each.

Come on, people!!!

Bryan Beyer of CA @ Sep 25, 2008 13:09:01 PM

Perp walk or nothing.

I want to see some people going to jail and being stripped of their assets before I'm come on board with ANYTHING.

donald of NC @ Sep 25, 2008 13:02:33 PM